Local food manufacturer Namib Mills has warned of potential retrenchments as a six-week strike continues, while union leaders hold out for improved bonus and backpay terms.
In a letter dated 6 February to the employees’ representative, the company said it would begin labour consultations for retrenching employees if its latest offer was not accepted by workers.
“Due to the prolonged industrial action, the company will be compelled to commence a formal retrenchment consultation process as from Monday, 9 February 2025, in line with applicable labour legislation and business sustainability requirements,” human resources head Amorey Pote said in the letter, which was addressed to the Namibia Revolutionary Transport and Manufacturing Union (Naretu), representing the workers.
The deadline for accepting the offer was this past Friday.
In response, Naretu leader Petersen Kambinda said workers would accept the offer once they agreed on the terms, and not based on any deadlines provided by the company.
“We are not going to operate on the timeline of Namib Mills. Since last October, the company has given employees deadlines.
There are over 20 deadlines we have not adhered to,” Kambinda told the media on Friday.
He said negotiations were progressing well, with employees receiving most of their demands.
In the latest offer presented by the company, it conceded on demands of salary alignment and an internal entry-level salary.
It also agreed to pay 50% of the December bonus to striking workers and five months’ backpay.
Kambinda said the union continues to push for 100% of the bonus and seven months’ backpay.
Namib Mills yesterday confirmed the authenticity of the letter to The Namibian.
“Yes, Namib Mills has commenced internal consultations and discussions on possible retrenchments to ensure business sustainability.
Other than the information contained in the communication directed to Naretu, I cannot comment further,” Pote said.
This week marks the sixth week of the strike, which started on 12 January.
Namib Mills workers formally gave notice to go on strike after months of failed wage negotiations.
The company at the end of January said it was still able to meet demand for its products, despite the nationwide strike at its depots.
Formal retrenchment consultations under the Labour Act refer to the requirement that companies must engage with the labour commissioner and trade unions once they consider retrenching employees.
In this process, companies are required to exhaust all options to avoid job losses and create a retrenchment plan.
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